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Running a successful business has a lot to do with tracking and understanding numbers.

It can be very uncomfortable to look at the numbers. Many business owners avoid them altogether.

Sometimes we’re afraid of what the numbers might tell us. Sometimes we simply aren’t sure what numbers to track. And other times we are so busy in the day to day of running our business that we don’t have the time to look at them.

In this episode I am going to share the most important numbers you need to know in order to get more clients in your business. I like to call this the math to more clients.

It’s simple math to increase your sales.

Before we crunch the numbers, we need to know how many clients we would like to create in your business. Ideally within a specific timeframe, say the next 90 days or the next 6 months. If you’re doing this exercise as part of your strategic planning you are welcome to use the next 12 months as well.

You may have a very clear growth number in mind. If you do…great. If you don’t, I like looking at the previous period’s revenue number and then increasing that by 25%.

You get to decide what a reasonable growth percentage is for you. It’s important to make your target a number that feels achievable. If it doesn’t it might stop you from taking action.

The second factor we need clarity on is how many clients, units of products/services we would need to sell in order to hit that revenue number.

If you sell multiple products/services, I suggest doing an evaluation on them first and distinguishing between the service and products that brought in the most revenue and that are also the most profitable from those that sold the least and are the least profitable.

It’s always a good idea to check the trend of revenue and profitability of a product or service over time…if you have the data. If you don’t…now is a great time to get started!

So, you know what your revenue goal is.

You know when you want to hit that goal.

And you know how much of what you need to sell to make that happen.

The second step is to get clear on your conversion rate.

Your conversion rate is the percentage of people who took you up on your offer out of the total number of potential clients.

For example, if 1000 people visit your website and 50 of them make a purchase, your conversion rate would be:

5% (50/1000 x 100)

If you had 10 consults or sent out ten proposals and 3 people took you up on your offer or signed up for your services then your conversion rate is 30% (That is 3/10 x 100)

Knowing what your conversion rate is gives you insight into a few key areas inside your business.

One. It tells you how effective your marketing efforts are. And where you need to make adjustments. It will also show you the opportunities available to you to make improvements.

Secondly, knowing your conversion rate will help you to make informed decisions. Like where to allocate your marketing budget to get higher returns on your investment.

Thirdly, if your conversion rate is low, focusing on improving your conversion rate will increase your revenue without the need for increasing your leads. A small improvement in your conversion rate can have a big impact on your bottom line.

Exactly how to improve will depend on your sales vehicle. But as an example, if you are a service provider and you sell via consultations or sales calls, working on for example how well you listen and explain your potential customers problems to them can make a huge difference in the number of yeses you get on the call.

Remember, the numbers inside your business are important. 

If you aren’t measuring them you cannot improve them. 

We can spend a lot of time in the drama of “I don’t have enough clients or I need more clients or my income isn't where it needs to be” or “we’re going through a tough time”

And we often get into the drama without having the real facts. 

The drama isn’t helpful. Knowing your numbers are.

Knowing your numbers will take you out of the drama. It will show you the way. 

Take a moment today to do the math to more clients in your business:

What are your numbers? What do they need to be? What is your plan for getting there?

You can watch this weeks podcast video HERE

Thanks for listening. See you next week!

Want to work smarter and not harder in your business?

Did you know that Ilonka hosts a monthly workshop that helps you design your business so that it works for you? Learn more about our upcoming workshops here. 90 minutes is all you need to move your business forward.

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